Interim report - Third quarter 2018

ANNOUNCEMENT NO. 12 - 7 NOVEMBER 2018

Attached please find the full interim report as PDF file

Today, the Board of Directors approved the interim report for the third quarter 2018. The report contains the following highlights:

Results

Adjusted Result* for Q3 2018: USD -12 million (Q3 2017: USD 4 million)

Dry Operator: USD 2 million (USD -2 million)Dry Owner: USD 4 million (USD 7 million)Tankers: USD -18 million (USD -1 million)

EBIT Q3 2018: USD -7 million (USD -2 million)

*"Profit/loss for the period" adjusted for "Profit from sale of vessels etc.

Markets

Dry Cargo: Continued improvements in rates driven by stronger global economic activity combined with lower fleet growthTankers: Continued oversupply and weak demand growth. Foundation for improvement towards 2020 still in place.

Performance

Dry Operator: Adjusted Result of USD 27 million over last 4 quarters. Contribution margin significantly higher than in Q3 2017.Dry Owner: Year on year market improvements continue. Cover for 2019 increased and further focus of ownership on Supramax and Panamax vesselsTankers: Despite very weak spot market performance almost on par with 1-year T/C

Vessel Values

Dry Cargo: -1%Tankers: -4%

Guidance

Expectations for the Adjusted Result for the year are maintained at USD 0 to 30 million.

The Board of Directors has decided to initiate a share buy-back programme of up to a total of USD 10 million
NORDEN publishes the interim report for the second quarter on Wednesday 15 August 2018 and will host a conference call at 3.30pm CET on the day.

WEAK TANKER MARKET OVERSHADOWING GOOD PERFORMANCE IN HEALTHY DRY CARGO MARKET

"Good performance in Dry Operator delivering another positive result cannot make up for the severe headwinds, we are facing in the tanker market. Dry Operator has responded well to changing trade flows following trade tensions between US and China and has during the third quarter protected value in positions that will benefit results in the fourth quarter. Dry Owner continues to benefit from an improving market and has increased cover. In tankers a gradual improvement in 2019 is expected as the market prepares for the IMO sulphur regulation. With a modern fleet, NORDEN is well prepared for this."

For further information:
Jan Rindbo, CEO, tel.: +45 3315 0451

About NORDEN
Founded in 1871 Dampskibsselskabet NORDEN A/S is an independent shipping company incorporated in Denmark and listed on Nasdaq Copenhagen. NORDEN operates a mix of owned and chartered tonnage. In dry cargo, NORDEN is active in a number of vessel types and is one of the world's largest operators of Supramax and Panamax vessels. In tankers, NORDEN is active in the Handysize and MR product tanker vessel types operated through the 50% owned Norient Product Pool.

Attachments

No. 12 - Interim report third quarter 2018 Interim report third quarter 2018_0711

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